Well to start off you need to add the VAT in for the euro prices plus the vastly higher cost of doing business over there. Someone has to pay for socialism after all.
I really wish someone would write the definitive account of why prices in two countries are not based on the spot exchange rate.
But lets compare apples with apples shall we. 1000ukp is about 830UKP exluding VAT which translates to 1328USD. Still higher than the 1000USD price which excludes sales tax but not quite as much.
It should also be pointed out that the US will also offer economies of scale that the UK cannot. Smaller profit margins on a higher turnover and all that stuff.
Lets not blame Olympus (or anyone else for that matter) for the cost of doing business in the UK. Blame the British Govt for that.
Prices in US do not include sales tax. Amazon, being out of state for most of USA (but Washington state) does not collect sales tax, it is up to the buyer to pay it with its tax return.
One of the few thinks where tax is included is the gasoline (you call it "petrol" over there).
Oh, wait, it's reduced from £999.99 to only £999.00. My mistake, that really makes all the difference!
ReplyDeleteROFL! Exactly! ;-)
I remember this being the case back in the early '70s; cameras cost the same number of pounds as dollars. I think it's been much the same ever since.
ReplyDeleteI suspect that the exchange rate doesn't have much to do with how much things cost, but how and why this is I do not know.
Its rip off Britain, and I was tempted to get the new Olypus but refuse to pay £999. I think the camera should be priced at around £750
ReplyDeleteI think much the same happens with the Euro and the $. By the way, I believe your heading has a typo, it should be 'gouging.'
ReplyDeleteWell to start off you need to add the VAT in for the euro prices plus the vastly higher cost of doing business over there. Someone has to pay for socialism after all.
ReplyDeleteI really wish someone would write the definitive account of why prices in two countries are not based on the spot exchange rate.
ReplyDeleteBut lets compare apples with apples shall we. 1000ukp is about 830UKP exluding VAT which translates to 1328USD. Still higher than the 1000USD price which excludes sales tax but not quite as much.
It should also be pointed out that the US will also offer economies of scale that the UK cannot. Smaller profit margins on a higher turnover and all that stuff.
Lets not blame Olympus (or anyone else for that matter) for the cost of doing business in the UK. Blame the British Govt for that.
Thanks, guys.
ReplyDeleteWait, I thought most prices in the US were listed including sales tax. Does this mean that when they say an iPad is $499, that does not include it?
Everything in the UK is way more expensive, that's how it's always been. I can't believe anyone's shocked by this still.
ReplyDeleteWell, the little secret is that if you buy on line you usually don't pay any sales tax at all in the US!
ReplyDeleteEolake,
ReplyDeletePrices in US do not include sales tax. Amazon, being out of state for most of USA (but Washington state) does not collect sales tax, it is up to the buyer to pay it with its tax return.
One of the few thinks where tax is included is the gasoline (you call it "petrol" over there).